Electric vehicle (EV) drivers have been advised to save nearly £200 and secure another year of free car tax. With Vehicle Excise Duty (VED) rules set to change this April, motoring experts are urging EV drivers to renew their car tax before 1st April to benefit from an additional year without charges.
Until now, electric car owners have been exempt from VED. However, under new legislation, they will have to pay an annual standard rate of £195 from April 2025 – the same as drivers of recent petrol and diesel vehicles.
However, savvy drivers can still take advantage of the current VED exemption for fully electric cars by renewing their car tax early, at no cost, before 1 April.
Motorists can renew their car tax in any month, regardless of when it is due to expire. EV drivers who do so by 31 March won’t incur any extra charges, even if their current tax period still has months left.
By re-taxing their EV online before 1 April – using the car’s registration number and reference number from the V5C logbook – drivers can secure tax-free motoring until March 2026, saving £195 under the new standard rate.
Under the new legislation, buyers of new EVs will pay £10 in the first-year showroom VED. From the second year onwards, they will be charged the same standard VED rate as petrol and diesel cars.
John Wilmot, CEO and founder of car leasing deals site LeaseLoco.com said: “While the introduction of VED for electric cars was expected, many drivers may not realise they can delay these charges for another year by renewing their tax before 1 April.
“Taking advantage of this short window to secure another year of tax-free driving is a no-brainer. It’s a simple step that could save you nearly £200, and with the deadline fast approaching, we’d encourage drivers to act now.
“Free road tax was a key incentive for EV adoption, helping offset the higher upfront costs of electric vehicles. Now, this policy shift risks slowing the transition to cleaner transport, particularly for those considering an EV as their next vehicle. While EVs are still cheaper to run than petrol cars, removing this benefit reduces their financial appeal, which could undermine the government’s net zero ambitions.
“However, it was only a matter of time before road tax was adjusted. The system was designed initially when EVs were a niche market, but with more electric cars on the road, the government will certainly see a tax revenue loss.
“While it’s fair that all road users should contribute, there’s an argument that this change could have been introduced more gradually or offset by additional incentives, such as improved charging infrastructure or purchase grants, to keep EVs attractive to consumers.”